Major US cities struggle to regain footing in housing market as COVID-19 restrictions ease
Rents in the 8 most expensive cities have dropped 16.3% since COVID-19 broke out
America's largest cities desperate to revive housing markets
FOX Business reporter Kristina Partsinevelos on the pandemic's devastating hit to homeowners and renters
Rent prices in major U.S. cities have continued to experience double-declines even as local leaders ease COVID-19 restrictions, new data shows.
Rents among the 8 most expensive U.S. cities dropped 16.3% since the beginning of the pandemic, according to apartment rental site Zumper.
When compared with the same period last year, the average rent for a one-bedroom apartment in San Francisco for the month of May was down more than 21%, while the declines in New York and Boston were 14.2% and 11%, respectively.
Rent for a one-bedroom apartment in San Jose, California, was down nearly 10% year over year, while prices dropped more than 13% in both Seattle and Philadelphia. Los Angeles saw a 9.2% decline.
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Despite the declines, San Francisco and New York remained the most expensive rental markets, where the median price for one-bedroom apartments as of May were $2,650 and $2,530.
In the U.S. overall, rent prices for a one-bedroom apartment rose 3% in May year over year bringing the median price to $1,254.
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Areas like San Francisco have seen a significant decline in population during the pandemic, as noted by Zumper, and it remains to be seen whether prices will return to their pre-pandemic levels.
In a positive sign for some of the other major metros, like New York and Los Angeles, rent prices in May were slightly higher when compared with April signaling the beginning of a potential rebound.
Researchers noted that Phoenix and its surrounding suburbs are among the areas that have experienced the most substantial growth since the start of the pandemic.
Some of the other cities that saw the largest year over year rent price increases in May included Chattanooga, Tennessee (up 27%), Cleveland (up 24.5%), Durham, North Carolina (up 21.2%) and Fresno, California, (up 19.2%).
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As previously reported by FOX Business, despite the negative economic effects that the pandemic had on many households, moving rates stayed largely the same as years prior. Moving patterns also held steady as the northeast saw a continued outflow of residents to Sun Belt states.
On a metro level, the top inbound cities for movers last year were Phoenix, Houston and Dallas, while the top three outbound were New York City, Anaheim, Calif., and San Diego.
Zillow researchers found that movers last year tended to move to areas where houses were $27,000 more affordable on average, and also 33-square feet larger.